In case of a Psoe-Podemos coalition debt reduction will be slower, said Pablo Iglesias, opening the door to an anti-austerity alliance
by Emanuele Bonini
Spain can put Europe in troubles, opening a new conflict within the EU. The leader of the Partido Popular, Mariano Rajoy, wasn't able to find a majority to create a government, and now it's up the Socialists try to form a coalition. This the first political element coming from the Spanish political world. The second element is the possibility of a coalition between Socialists and the far-left party Podemos. In such a coalition the political agenda would be a stop to austerity measures and «reduce the deficit at a slower rhythm». This is more than flexibility, this is putting in question the stability and growth pact rules. So, what about now? What to do in case Spain really will put forward a revision of the rules? These ones are more than questions, since they risk to became a real problem. The European Commission is keeping silence. Officially the EU institutions never offer comments on internal affairs, especially when things are ongoing and still to happen. But of course there are those who already study countermeasures in case of a Spanish issue, because there is no doubt that Spain can There is a silent concern. Governments, EU institutions, stock exchanges are looking at Spain. An eventual Psoe-Podemos alliance could be seen as a threat in stability, and maybe the beginning of a domino effect. Spain is not Greece, it's a big country and a big economy, but re-discussing rules would offer an opportunity to put together all those against the strict side of the Stability and growth pact. A government starting not fulfill the European commitments can put in question the Eurozone as a whole, with unpredictable effects on financial markets and, of course, the Eurozone. Of course we talk about the statements coming from Podemos leader Pablo Iglesias. Nothing but words, at the moment. But in politics words count.
Spain can put Europe in troubles, opening a new conflict within the EU. The leader of the Partido Popular, Mariano Rajoy, wasn't able to find a majority to create a government, and now it's up the Socialists try to form a coalition. This the first political element coming from the Spanish political world. The second element is the possibility of a coalition between Socialists and the far-left party Podemos. In such a coalition the political agenda would be a stop to austerity measures and «reduce the deficit at a slower rhythm». This is more than flexibility, this is putting in question the stability and growth pact rules. So, what about now? What to do in case Spain really will put forward a revision of the rules? These ones are more than questions, since they risk to became a real problem. The European Commission is keeping silence. Officially the EU institutions never offer comments on internal affairs, especially when things are ongoing and still to happen. But of course there are those who already study countermeasures in case of a Spanish issue, because there is no doubt that Spain can There is a silent concern. Governments, EU institutions, stock exchanges are looking at Spain. An eventual Psoe-Podemos alliance could be seen as a threat in stability, and maybe the beginning of a domino effect. Spain is not Greece, it's a big country and a big economy, but re-discussing rules would offer an opportunity to put together all those against the strict side of the Stability and growth pact. A government starting not fulfill the European commitments can put in question the Eurozone as a whole, with unpredictable effects on financial markets and, of course, the Eurozone. Of course we talk about the statements coming from Podemos leader Pablo Iglesias. Nothing but words, at the moment. But in politics words count.
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